Florida has repealed the sales tax on commercial real property rentals under Florida Statute Section 212.031. For rental or occupancy periods beginning on or after October 1, 2025, no state sales tax or county discretionary surtax applies to commercial rent or to license fees for the right to occupy commercial space. This includes common commercial uses such as office, retail, warehouse and self-storage. The Florida Department of Revenue announced implementation details in TIP 25A01-04, issued July 24, 2025.
Period-based Determination
The repeal turns on the rental period, not when payment is made. Rent paid in September for an October term is not taxable. Rent paid in October for a September term remains taxable.
Items that remain taxable
212.031 repeal. Sales tax continues to apply to transient accommodations of six (6) months or less, as well as to parking or storage of motor vehicles, docking or storage of boats, and tie-down or storage of aircraft. These items are taxed under Florida Statute Section 212.03 and are unaffected by the repeal.
Filing, refunds, and recordkeeping
Landlords that have been collecting only commercial rent tax must keep filing returns through the period that ends September 2025 based on their normal filing frequency. After the final return is received, The Florida Department of Revenue will update the account status without a separate closure request. Non-taxable rent for October through December 2025 should not be reported. If tax was charged on exempt rent, the landlord must first refund the tenant and then file Form DR-26S to seek a refund from The Florida Department of Revenue. Recordkeeping is still required for at least three (3) years.
Related program and direct pay changes
There are related timing and credit changes. No new allocations for the Florida Tax Credit Scholarship Program tied to commercial rent will be issued on or after July 1, 2025, although credits earned earlier can be used only against tax due on pre-October 1 rental periods. Direct pay permit holders also stop accruing tax on commercial rent for periods beginning October 1, 2025.
Conclusion
Florida’s repeal removes sales tax and surtax from commercial rent for periods beginning on or after October 1, 2025. Landlords and tenants should adjust invoices and lease language for the period-based rule, keep filing through September 2025, and handle any refunds through the required process. Transient lodging and specified parking or storage charges remain taxable.
